Masco Corporation Reports First Quarter 2023 Results
Masco Corporation (“Masco”), one of the world’s leading manufacturers of branded home improvement and building products, reported its first quarter results.
2023 First Quarter Results
- On a reported basis, compared to first quarter 2022:
- Net sales decreased 10 percent to $1,979 million; in local currency, net sales decreased 9 percent
- In local currency, North American sales decreased 10 percent and international sales decreased 3 percent
- Gross margin increased 180 basis points to 33.8 percent from 32.0 percent
- Operating margin decreased 10 basis points to 15.9 percent from 16.0 percent
- Net income decreased to $0.90 per share, compared to $0.97 per share
- Compared to first quarter 2022, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24 percent, were as follows:
- Gross margin increased 150 basis points to 33.6 percent from 32.1 percent
- Operating margin decreased 40 basis points to 15.8 percent from 16.2 percent
- Net income decreased to $0.87 per share, compared to $0.97 per share
- Liquidity at the end of the first quarter was $1,300 million (including availability under revolving credit facility)
- Plumbing Products’ net sales decreased 10 percent; in local currency, sales decreased 8 percent
- Decorative Architectural Products’ net sales decreased 10 percent
“We are pleased with our strong execution in what remains a challenging macro environment,” said Masco President and CEO, Keith Allman. “In the first quarter we improved adjusted gross margin by 150 basis points with pricing actions and operational improvements offsetting lower volume. Additionally, we returned $121 million to shareholders through dividends and share repurchases during the quarter, showcasing the Company’s strong financial position and our Board’s continued confidence in Masco’s resilient business model.”
“While the headwinds we discussed last quarter continue, including softening demand trends, persistent inflation and tighter consumer spending, we have moved quickly to adjust our costs and successfully mitigated margin impact in the first quarter. We continue to expect adjusted earnings per share to be in the range of $3.10 to $3.40 per share for 2023. We remain confident in our strong business fundamentals and are committed to continued prudent investment in our market leading brands, service levels, and innovative products to best position Masco for long-term shareholder value creation,” concluded Allman.
Interim CFO Appointment
Masco also announced today that the Company’s Board of Directors has appointed David Chaika, Masco’s Vice President, Treasurer and Investor Relations, to serve as interim Chief Financial Officer, effective June 1, 2023, upon the retirement of John G. Sznewajs. Mr. Chaika will serve in this capacity while the Company conducts an internal and external search for a permanent Chief Financial Officer.
About David Chaika
David Chaika was appointed Vice President, Treasurer and Investor Relations in May 2016. In this role, he is responsible for Masco’s Treasury, Risk Management, Financial Planning & Analysis and Investor Relations functions. Mr. Chaika will continue to serve in this capacity while serving as interim Chief Financial Officer. Prior to 2016, he held roles in the Treasury and Corporate Development groups. Prior to joining Masco, Mr. Chaika was a Vice President in the commercial banking industry and an officer in the U.S. Navy. Mr. Chaika earned his MBA from the University of Chicago and a Bachelor of Business degree from the University of Michigan.
For the full first quarter, click here.
Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr® paint; Delta® and Hansgrohe® faucets, bath and shower fixtures; Kichler® decorative and outdoor lighting; and HotSpring® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com.
David Chaika – Vice President, Treasurer and Investor Relations – firstname.lastname@example.org – (313) 792-5500
Source: Masco Corporation